I'm a former senior editor at Fortune Small Business magazine, and I have written about entrepreneurship for publications such as Crain's New York Business, Fortune, Money, Working Mother, CBS MoneyWatch, and Good Housekeeping. I'm also co-founder of 2ookfreelancer.com, a community for indie professionals looking to build a thriving business in today's crazy economy.

U.S. Entrepreneurs Find Growing Opportunity In China

Many Americans get frustrated by the huge trade deficit between the U.S. and China.

But perhaps there is some change in the offing, as more American businesses recognize opportunities to tap into the growth of the middle class in China and other parts of Asia and market their goods and services overseas.

Among small and middle market firms in the U.S. that are active in global trade, 33% see Asia as the most promising business region, according to research released earlier this month by HSBC bank and modeled by forecasting firm Oxford Economics.

China will likely hold onto its status as a top export markets for U.S. in the next two decades, along with Canada and Mexico, according to HSBC’s research. China is now the destination for 7% of U.S. exports, up from 1% a decade ago. By 2030, about 14% of U.S. exports will be purchased by Chinese customers, the bank predicts.

However, Vietnam and Korea offer the most short-term opportunity for U.S. exporters, because these emerging economies are growing so fast, the research found.

Outside of Asia, Latin America is also capturing the attention of U.S. business owners. Among those surveyed, 28% of business leaders say it has the most promise as an export market.

Currently, the top five destinations for U.S. exports are: 1. Canada, 2. Mexico, 3. China, 4. Japan and 5. the U.K., based on 2011 findings, notes HSBC. While the top three should stay the same until 2030, Japan and the U.K. will be replaced on the list by Korea, which will take fourth place, and Brazil, which will become number five, predicts HSBC.

The findings come at a time when small and midsize firms in the U.S. are more bullish on exporting than they have been in years.

The U.S. HSBC Trade Confidence Index rose to 115, an all-time high since the index was created five years ago, rising from 114 six months earlier and above the global average of 113. The international survey includes 5,500 firms around the world, including about 250 in the U.S.

Among U.S. wholesalers and retailers 75% were optimistic about the six-month trade outlook, and 70% of American manufacturers were. And two-thirds of those surveyed in the U.S. expect trade volumes to rise in the next six months. Why? Half cite higher global demand and better economic conditions in industries such as manufacturing. HSBC predicts U.S. trade will grow 6% a year from 2014 through 2016.

A new survey shows that it’s a good time to sell “Made in the USA” products overseas. (Photo credit: David Salafia)

One key strength for the U.S. is in technology exports, and the U.S. is likely to hold onto its global leadership in this area over the next 20 years, according to HSBC’s research. It is one of the top three tech exporters in the world, owing, in part, to the highly educated workforce here.

These exports–which will account for an estimated 17% of total U.S export growth in the next 20 years– include office and automatic data-processing machines, telecommunications equipment, electrical machinery and appliances, and photographic apparatus and optical goods.

But U.S. firms would be wise to keep investing in research and innovation, the researchers found. While government support for R&D in the U.S. is high relative to many other countries, more private sector investment could help bolster the position of the U.S. as a tech exporter, the report notes. In both Japan and Korea, there’s more money spent on R&D, the report found.

Outside of tech, the U.S. does the most exporting of industrial machinery, transportation equipment and scientific apparatus, the research found.

Why is this important to you if your’e not running a manufacturing plant?

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Since Kissinger’s scheme to create artificial dollar demand after the oil embargoes and the Vietnam tragedy, Asia has needed petrodollars to buy OPEC oil and grow their economies. Additionally, this artificial dollar demand negates efforts to export, since the The Fed can simply print more dollars without worrying about The USA’s worst in the world current account deficit dropping the value of the dollar. Mercantilism is not dead, The USA has just thrown in the towel while Asia monopolizes real wealth creation through manufacturing.

You raise some good points about how complicated the situation is, Demand Sider. I do think that there’s still value in exporting for entrepreneurs, no matter where they happen to be based. They can diversify their customer base and revenue outside of their country, which can strengthen their businesses.

By the way, our exports are fossil fuels, soy beans, hogs, scrap metal, and scrap paper. This is not the stuff of middle class creation. See The PRC, Germany, Switzerland, Japan, South Korea, Malaysia, etc. They actually have a clue.